REQUEST FOR PROPOSAL

Request for Proposal.
Too often large maintenance projects such as roof replacements, copper
repiping projects, painting & waterproofing projects, etc., start
with a "Request for Proposal" (RFP) from the board to various
contractors. Boards ask contractors to propose how they would repair the
association's roofs or paint their buildings. Each contractor then
submits a proposal based on his own approach to the project. As a
result, bids can vary significantly in the quality and quantity of
materials used and how they are applied. That leads to large disparities
in project pricing. Boards then pick a bid not realizing they may be
selecting an expensive application of a shoddy product by an
inexperienced contractor with little or no insurance and meaningless
warranties. This could have serious legal consequences for the
association (and the board).

Request for Bid. The best
method for obtaining true bids is by using a "Request for Bid" (RFB).
With an RFB, all vendors are provided identical specifications describing
the scope of work, the quality of materials to use, how the work is to be done, levels of insurance required and a timeline for completion.
This allows for true competitive bidding. To prepare a proper RFB and
oversee the bidding, the board must employ the services of an
independent consultant or construction manager.

Recommendation:
Litigation is expensive and unpredictable. It is far better to hire a
good consultant to prepare proper bid specs than to spend the
association's money in court, levying special assessments for legal
fees, and redoing a flawed project at the end of the litigation. In
addition to proper bid specs, all contracts should be reviewed by legal counsel.